GST Refunds and ITC Expansion Mark Third Phase of Reform: PwC

PwC's Pratik Jain has described the GST Council's recent policy measures as marking a third phase of India's goods and services tax reform, with a focus on bolder changes and improved business ease.

According to Jain, the expanded refund provisions for input services and capital goods, coupled with input tax credit (ITC) eligibility on employee insurance, are designed to address working-capital pressures and reduce operational costs for businesses.

These measures signal a strategic shift toward policy architecture that supports India's integration with global supply chains, positioning the tax framework as more competitive and business-friendly than earlier phases of GST reform.